Formative assessment, commonly referred to as assessment for learning, provides ongoing feedback and supports students’ self-regulation and motivation, whereas summative assessment, or assessment of learning, evaluates students’ achievements at the conclusion of a unit. Evidence from Germany and broader European contexts reveals that many EFL teachers and students maintain traditional approaches with heavy reliance on summative testing. However, formative practices—such as peer assessment, portfolios, and targeted feedback—are shown to improve learner engagement and self-efficacy. German data from the TALE project highlight discrepancies in assessment literacy and emphasize the need for teacher professional development. The integration of both formative and summative approaches is recommended to optimize language learning outcomes in secondary EFL classrooms.